Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target....
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Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $26 million. Robbin knows that these similar deals have recently closed:
a. What is the average price multiple? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
b. Using the valuation multiple from part (a), what is the estimated value of Nest Corp.? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Company Shell Technologies Layer Company Case Partners EBITDA $16 million $31 million $21 million Valuation $57.6 million $96.1 million $86.1 million
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